The proactive proposal to derisk deUSD/sdeUSD from last week is now executed onchain. The pause mitigated additional risk as the situation surrounding Elixir has evolved. After consulting with Compound stakeholders, the community multisig has unpaused USDC and USDS markets, allowing users to resume normal activity. Since the pause began, users have been able to top up collateral positions, supply liquidity, and repay loans, and have now regained full functionality.
We recommend that the community transfer USDT from Compound V2 reserves to the Compound V3 USDT Comet. This would fully cover any temporary reserve gap and provide an additional safety buffer. We reiterate that users can continue to top up collateral positions, supply liquidity, and repay loans.
The Elixir team has publicly stated its intention to support 1:1 redemptions for deUSD, and we welcome that team to update the community here with their plans regarding redemptions for the Compound DAO.